Why Copier/Printer Lease Payments May Increase
More than 80 percent of our customers choose to lease their copiers and printers. There are many advantages to doing this, including cash flow, a structured payment plan, tax deductions, faster upgrades and end-of-term options.
I always want to make sure the organizations we serve are happy, not only with the quality of our multi-function printers, but also with the terms of our leases. That’s a primary reason we carefully screen our lease vendors, using only the most trusted in the office equipment industry.
One question we often bump into with service-included leases is: “Why do my payments go up after a couple years?” I’ve invited our Director Administration, Karen Brahler to explain this frequently misunderstood issue.
Leasing is, by far, the most flexible option when purchasing office equipment, such as an all-in-one copier. The fair market lease is the most common because it offers the lowest monthly cost. Other options include a 10-percent purchase-option lease and a dollar-out lease. The best lease for you depends on your budget and your equipment needs.
Service agreements for copiers and printers typically come standard with any office equipment purchase, no matter whom the dealer happens to be. Of course, this doesn’t guarantee good copier service. Before agreeing on an equipment purchase, you should check out the credentials of your dealer’s service techs. The service agreement can be billed separate from the lease by the copier dealer or it can be included in the payment and billed by the leasing company. By combining the service agreement with the equipment lease, we provide our customers with a one-invoice solution that is streamlined and cost-effective.
While you are not required to purchase a service contract when you buy new copier equipment, receiving service on a “time and material” basis is a risky and, quite possibly, a very expensive alternative. A service contract will ensure regular copier and printer maintenance, minimizing breakdowns. If you only call a service tech when a copier isn’t working, you may be in for costly repairs.
It is also important to recognize that, even though service may be combined with a lease payment (that remains constant), the cost to provide award-winning service escalates slightly from year-to-year. The gradual increase in payment is usually the result of annual service adjustments.
So, I recommend a one-invoice lease payment that covers both the equipment and the service. This option eliminates the need to pay a separate service invoice each month and helps you to evaluate your total cost of ownership. Our sales reps are trained to evaluate what plan is best for your business and they will point you in the right direction for the optimal equipment, service agreement and lease structure. We are flexible because we know the needs of your business may be unique.
If you own or manage a business or other organization in Canton, Akron, Youngstown, elsewhere in Northeast Ohio or Western Pennsylvania, contact me. I would be happy to go into greater depth on how copier leasing and service can be bundled together for you.